Monday, February 28, 2011

The Silver Lining

Optimists are always looking for a ‘silver lining’ in anything that seems negative. Of late, the world has erupted into riots over various issues and several governments have been toppled while several others remain vulnerable. The reasons for the rioting has varied from desire for freedom, desire for democracy, irresponsive governments, and living standards that are declining due to inflation. In somewhat of a case of manifest destiny, Libya has been witness to riots that have threatened their oil production which has pushed oil prices higher which pushes inflation higher. Yes, I know the Federal Reserve claims there is no inflation but we are talking reality right now. The fire of revolution was lit on September 1, 2010 when the Fed Chairman Bernanke announced a QE2 program to buy a trillion dollars worth of Treasury notes and garbage mortgage paper from shill banks in the US. Of course this action is inflationary and the world was already struggling with price hikes due to all the other previous central bank manipulation, infusion, and confiscation of wealth. Let the record show that all this effort on the part of the Fed and the ECB was to save the big banks of the US and Europe by robbing the citizens’ Treasuries and giving the loot to bankster Presidents. Exhibit ‘A’ is over the past few weeks several big banks announced multi-million dollar bonuses to their CEOs. Well, good for them. However, the rest of the world didn’t get a million dollar bonus and they find it harder and harder to put food on the table each week. Given that governments are on the side of the banksters, the citizens of the world have taken to revolt. 
And yes, there is a silver lining. Of course the main goal of the Fed is to enrich the banksters by any means necessary and at any cost. And, since the top 90% of income earners own 90% of stocks, pumping money into banks in turn pumps money into the stock market. Hurrah! The stock market responded from September on by rallying strongly. That is certainly a silver lining to the wealthy while the rest of the world starves and the banksters gorge themselves on the booty of central bank wealth confiscation. The other silver lining is silver.
The chart below is the silver ETF, SLV over the past six months. Like the stock indices owned by the central banks, silver has also been in a bull rally. It is interesting that at about the same time each month, a day in the first week of the month witnessed heavy selling (circled in blue). The trend remains bullish but the timing smacks of attempted price manipulation. Maybe I’m just paranoid but markets are seldom so well timed. But February was different. The selling of silver didn’t happen at the beginning of the month but at the end. Did someone forget to try and manipulate the market? 
Coincidentally, precious metals rise when there is strife in the world. Egyptian riots began to boost silver at the end of January and maybe the manipulators of the world were just busy trying to guard their vaults. Then Libya broke out in revolution and silver just kept on rising. So now we have inflation, rising oil prices, currency trepidation, and political strife throughout the Middle East and other parts of the world. Add all that together with a Federal Reserve determined to destroy the US dollar and silver looks like it could keep on rising to the sky! 

6 months - SLV in candlestick
Chart courtesy
Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article.

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